Investment with ex. div. quotation-executorship laws, Financial Accounting

Assignment Help:

Investment with ex. div. quotation

Investment with ex. div. quotation will be debited to the investment account at its ex. div. value. The full impending dividend will also be debited to the Investment Account. When the dividend is subsequently received it is apportioned in the same way as a) above.  A journal transfer is then made from the Capital column of the Investment Account to the debit of the Estates Capital Account in order to restore the book value of the investment to its probate (quarter—up) value.

 

Exanple                         Date of Death:              30th June, 20X5

 

                                          Stock:                        3% Kenya Stock

                                       Interest paid:                 31st January

                                                                           31st July

                                       Holding:                       Shs 6m quoted at 86—88 ex.div.

 

                                                             Investment Account

                        Nominal     Income      Capital                           Nominal     Income      Capital

20X5                     Sh'000       Sh'000       Sh'000                               Sh'000       Sh'000       Sh'000

 

June      Estate                                                      July       Estate

30         Capital                                                     31         Cash

            Account                                                              Book

            (stock                                                                  (interest

              at                                                                      pre-

            death)          6,000                          5,190               death                                                75

                                                                                       post-death                        15

 

            (interest                                                   July       Estate Capital

             due)                                                 90   31         Account

                                                                                                                                               15

 


Related Discussions:- Investment with ex. div. quotation-executorship laws

Quantitative techniques, Evaluate 1-1/3(5/6 - 1/2) ---------------- 2/5 / ...

Evaluate 1-1/3(5/6 - 1/2) ---------------- 2/5 / 2/5(5/6-2/3)

how can a flexible budget help managers control costs, 1.  How can a flexi...

1.  How can a flexible budget help managers control costs? A flexible budget can help managers control costs by showing favorable and unfavorable variances within the planning o

Seller-buyer-seller’s bank and buyer’s bank, I am facing some problems in ...

I am facing some problems in my assignment of Seller, Buyer, Seller’s Bank, and Buyer’s Bank. Can anybody suggest me the proper explanation for it? a. Draw the diagram of the tr

Financial accounting regulation, Carminho Building Products Ltd (an Austral...

Carminho Building Products Ltd (an Australian company) is a client of Rodrigues Accounting (RA). Carminho Building Products Ltd (CBP) is involved in the development, manufacture a

The book value of shareholders equity, Manik Enterprises spent $10,000 to p...

Manik Enterprises spent $10,000 to purchase farming equipment 5 years ago. This equipment is presently valued at $2,000 on today's balance sheet but could actually be sold for $4,5

Define country in rigorous recession reflect on devaluation, Define why cou...

Define why country in rigorous recession reflect on devaluation? Countries can deal with the both internal problems with external solutions. Why might a country in rigorous rec

Sensitivity analysis of project, Q. Sensitivity Analysis of Project? Th...

Q. Sensitivity Analysis of Project? This system measures the change in project NPV arising from a fixed change in each project variable or measures the change in every project

Advancement-truts laws and accounts, ADVANCEMENT Trustees may apply not...

ADVANCEMENT Trustees may apply not more than half of the presumptive or vested share of the capital held in trust for any person (infant or adult) for  his advancement or ben

Write up the necessary ledger accounts, Question: Agatha Co. is a tradi...

Question: Agatha Co. is a trading company making up its accounts regularly to 31 December each year. At 01 January 2005 the following balances existed in the records of Agat

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd